THE Confederation of Zimbabwe Retailers (CZR) is tipping an increase in consumer spending on the back of the projected 6% economic growth this year.
In a statement reviewing last week’s 2025 Mid-Year Budget and Economic Review, CZR president Denford Mutashu said the organisation was optimistic that the projected 6% gross domestic product (GDP) growth would stimulate spending.
Disposable incomes have deteriorated, with families prioritising budgets in an era with no wage increases.
“Looking ahead, CZR is optimistic that the projected 6% GDP growth will stimulate consumer spending, increase aggregate demand and ultimately boost retail and wholesale sales,” Mutashu said.
“Furthermore, the 30% increase in foreign currency inflows, reaching US$6 billion in the first five months of 2025, is expected to support hard currency availability in the market and improve liquidity conditions.
“CZR remains committed to working with the government, policymakers and other stakeholders to ensure the retail and wholesale sector continues to thrive and play its full part in Zimbabwe’s economic transformation agenda.”
The optimism by retailers comes despite the absence of a reform agenda for key sectors such as mining, retail, and manufacturing — vital engines for sustainable economic recovery — in last week’s review.
Instead, the Treasury celebrated a rebased GDP of US$45,7 billion and a gross national income exceeding US$3 000, suggesting Zimbabwe was now comparable to other middle-income countries.
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But this headline growth belies the underlying realities.
The Zimbabwe National Statistics Agency’s 2023–2024 GDP report, released in June, showed a widening gap between nominal growth figures and actual economic performance.
“The further liberalisation of the foreign exchange market through Statutory Instrument 34 of 2025 has not triggered speculative or inflationary pricing behaviour within the formal retail and wholesale sector,” Mutashu said.
“On the contrary, retailers and wholesalers have generally demonstrated price discipline, which reflects growing alignment with the official exchange rate. However, we note with concern isolated instances of businesses applying significantly depreciated exchange rates in a bid to discourage local currency transactions.”
He urged all businesses to uphold ethical practices that promote consumer trust and economic stability.
“We are encouraged by the government’s continued engagement with business representative bodies, including CZR, the Chamber of Mines, the Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce, among others, on taxation matters.”
He said these consultations were critical in addressing existing tax distortions and creating a fair and supportive tax regime that enhances business growth, competitiveness and compliance.
“A responsive tax framework is essential for strengthening domestic resource mobilisation and ensuring Zimbabwe remains a competitive investment destination both regionally and globally,” Mutashu said.
